Background

Economics is one of the most important factors to mention a country that has power. Economic
growth is getting better each time will improve the development system, the better. But one of
the factors that influence the course of the economy of a country is the stability of the global
economy. If the stability of the global economy is well controlled, then broadening the financial
crisis to the various countries can be minimized.
One of his development of the automotive world in some countries in Asia, especially Indonesia
today drove very fast. The high demand for four-wheeled vehicles is to stimulate the interest of
investors both local and foreign investors are vying to run this business in order to gain
maximum profit. With the huge market potential and promising, investors do their utmost to get
consumers as much by marketing their superior products, followed by intense competition
among the companies competitors who market similar products.
The high level of competition among automotive companies forced the producers of different
kinds of brands competing to market their superior products with various strategies, both
marketing strategy and also management strategy. With a variety of characteristic displayed by
each of these products, the strategy is a major force to be held to deal with the high level of
competition that are expected to gain market share widest which is the main objective. Without
the strategies that mature and well-planned, the producers will be very difficult to introduce and
market their products to the public in accordance with the desired objectives.
The management strategy has a very important role in supporting the development of a business.
With the good management strategy, the company will be very easy to know what are the things
that need to be done in running and developing a business. What are the strengths and
weaknesses, as well as how big the opportunities and threats being faced by the company will be
completed apabilaperusahaan have a good management strategy. Besides a description of the
planning will be done by the company in the future, manajemenstrategi also a result of the
evaluation of management policies undertaken in the previous year.
Policies that are considered not give a positive impact on the business development can dijadi
adikan reference as the lack of proper management strategies. Similarly, the policy - policies that
1

are considered to have added value can be used as the basis for the policies to be taken in the
future So what are the things that need to be improved and developed can be arranged in a
management planning strategy.
The number of companies in Indonesia who fail to execute its business and subsequently went
bankrupt because the company usually have less mature plan and execute management strategies
that are less precise. So the company is not able to know how to introduce their products and to
find out what the needs of today's society. What will be done, how to do, what you want to
achieve, and what the resulting impact of that has been done are important things that must be
considered in making a policy. Therefore to decide on a policy that will be carried out, the
management should first evaluate and survey of the policy.

I.

Current Situation

a. Strategic Performance

Finance

Net Revenues
Toyota had net revenues for fiscal 2014 of 25,691.9 billion, an increase of 3,627.7 billion, or
16.4%, compared with the prior fiscal year. This increase mainly reflected the favorable impact
offluctuations in foreign currency translation rates of2,510.4 billion and changes in vehicle unit
sales and sales mix of 300.0 billion. Excluding the impact of changes in the Japanese yen values
used for translation purposes of 2,510.4 billion, net revenues would have been 23,181.4 billion
during fiscal 2014, a 5.1% increase compared with the prior fiscal year. The automotive market
in calendar year 2013 increased by 7.9% in North America and in fiscal 2014 increased by 5.9%
in Japan compared with the prior year due to the market in the U.S. and Japan progressing in a
steady manner. Under theseautomotive market conditions, Toyotas consolidated vehicle unit
sales increased by 2.8% comparedwith the prior fiscal year to 9,116 thousand vehicles.
4

Currency Fluctuations
Toyota is affected by fluctuations in foreign currency exchange rates. Toyota is exposed to
fluctuations in the value of the Japanese yen against the U.S. dollar and the euro and, to a lesser
extent, the Australian dollar, the Russian ruble, the Canadian dollar, the British pound, and
others. Toyotas consolidated financial statements, which are presentedin Japanese yen, are
affected by foreign currency exchange fluctuations through both translation risk and transaction
5

risk. Translation risk is the risk that Toyotas consolidated financial statements for a particular
period or for a particular date will be affected by changes in the prevailing exchange rates of the
currencies in those countries in which Toyota does business compared with the Japanese yen.
Even though thefluctuations of currency exchange rates to the Japanese yen can be substantial,
and, therefore, significantly impact comparisons with prior periods and among the various
geographic markets, the translation risk is a reporting consideration and does not reflect Toyotas
underlying results of operations. Toyota does not hedge against translation risk.
Transaction risk is the risk that the currency structure of Toyotas costs and liabilities will deviate
from the currency structure of sales proceeds and assets. Transaction risk relates primarily to
sales proceeds from Toyotas non-domestic operations from vehicles produced in Japan.

Market

Toyota continues to grow as one of Indonesias leading car brands, offering abundant features of
excellence that justly meet the expectations of its loyal customers in the country. Toyotas
outstanding features include easy maintenance, vast service network and availability of a wide
selection of car types for all kinds of consumers needs and market categories. Toyota also has
the unique ability to continuously innovate and reinvigorate its product propositions in line with
technological development and trends in the automotive industry.
To meet consumers demands for quality cars that are aligned with changes in lifestyle, Toyota
and Lexus introduced 5 new models and 2 facelift models in 2014 across various car types as
part of Toyotas strategic initiatives to maintain market leadership.
To stand out amid the rigorous competition, Toyota strives to improve the quality of its products
and services, committed to providing the best to customers anywhere in the country and in all
market segments Provide Best Total Customer Ownership Experience - in order to win
customer loyalty.
Overall, Toyota was able to maintain its nationwide position of car sales, although stringent
market competition did affect some segments, especially low MPV. Low MPV booked a lower
market share of 33% from 35% the previous year.

In a challenging business climate, TAM consistently realized its investment plans of enhancing
national distribution network infrastructure to ensure service excellence, bolster customer loyalty
and strengthen relationships with customers and car owners. Toyota Sales Operation (TSO),
popularly known as Auto2000, conducts sales of Toyota cars as well as through another four
main dealers to maximize market reach throughout the country.
The distribution and service network is expanded with the opening of 12 new sales outlets and 12
new service outlets, totaling 276 outlets by the end of 2014.
PT Toyota Astra Motor Tbk is the sole distributor of Toyota cars in Indonesia. The company is
for 51 percent owned by Astra International, one of Indonesia's largest diversified
conglomerates.
Toyota Astra Motor is the clear market leader in Indonesian car sales. In 2013, the company held
a market share of 35.3 percent, followed by Daihatsu at 15.1 percent.
For the national market, in March 2015 Avanza managed to achieve sales of 13 210 units that
remain the best-selling car with a 52.6% market share in low MPV segment. Since its launch in
2004, Avanza sales have reached more than 1.3 million units. This shows that in the mature age
of 12 years, Avanza was able to maintain its position as the top choice of Indonesian people and
the average market share above 40%.
Yaris market share of 31.3 percent in 2014, an increase of a percentage of the previous figures
were only 21.6 per cent in 2013.
Yaris series sales figures according to the General Manager of Corporate Planning & Public
Relations TAM, Widyawati Soedigdo, reaching around 2000 units per month nationwide.

b. Strategic Posture

Vision

Being the most successful automotive companies and revered in Southeast Asia by providing the
best experience in vehicle ownership

Mission

1. Continuously providing products and services of high quality and meet customer needs
through the best marketing program
2. Develop competent employees by creating a good working environment to support the
achievement of customer satisfaction
3. Strengthen collaboration with producers, primary dealers and dealers through communication
and better cooperation
4. To develop a healthy company operating in all aspects, such as regulatory compliance,
environmental and others.

Objectives

The aim of the company Toyota, both PT. Astra Motor and Toyota Motor Manufacturing
Indonesia is designing environmentally friendly vehicles in the future. With the vehicle engine
technology pioneer hybrid electric/gas, we are talking about machines that use energy from
oxygen, where the waste products in the form of water. And with the latest technology that
ensures safety, such as pedestrian recognition systems, inter-vehicle communication and radar
safety before the collision, the experts. We work to create a vehicle that is safe for everyone, and
to improve the quality of life of consumers.

Policy

Legal Disclaimer (Disclaimer/Legal Disclaimer)

Terms and Conditions of Use Site PT Toyota Astra Motor
PT Toyota Astra Motor appreciate your interest and your visit to this site. By using or accessing
this site, you agree to accept all terms and conditions listed herein. PT Toyota Astra Motor may
change these terms and conditions at any time without notice. Using or accessing this site after
8

the amended terms and conditions signifies your agreement to accept changes to the terms and
conditions. If you do not agree with these terms and conditions, then you should not use this site.
This site only for personal use, not for commercial purposes.
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When using our services, you may be asked to provide data/personal information. The provision
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When you download any content from one website, you understand that the content belongs to
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You acknowledge and agree that you are not allowed to reproduce, copy, modify, display,
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You are responsible for ensuring that equipment and / or software do not disturb or disrupt /
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You understand and agree that use of the site, any pages in it, and / or services of the site,
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10

for any damage to your computer, other equipment, or loss of data that may result from the use
of such. You agree that the site, the service in any of the site, and any downloads, are provided
"as is" and "as availability".
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Site may contain to other web sites ("Third Party Sites") such as articles, photographs, text,
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content or items belonging to or comes from a third party ("Applications, Software or Third
Party Content"). Sites, applications, and software or third-party content are not investigated,
monitored or checked for accuracy, accuracy, legality, timeliness, authenticity, reliability, or
completeness by us, and none of the Toyota Entities (as defined below) is responsible for any
third party sites that are accessed through the site or third-party applications, software or material
displayed and available on the site, including (and not limited to) the content, accuracy, presence
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Inclusion, Your linking or permit the use or installation of each site and/or third-party
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If you decide to leave this site and access to or use of third party websites or install third-party
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the applicable terms and policies, including privacy and data collection practices of any third
party sites and any third-party applications, both software and content you navigate from one site
or related applications that you use or that you install from one of the sites. We can also supply or
provide access to products, services, or third party applications. Products, services, and
applications will be purchased and/or obtained directly from such third party.
Toyota is not responsible for any transaction products, services, or applications from any third
party, or for any content or information presented in connection with the product, service or any
third party applications. Toyota also not responsible for the contents/content website or any
mobile site linked to such sites, and the fact that the links provided in the site does not support
11

our signify approval or any of the materials contained in any linked site. Risk of any connection
and use of the site is with you own.
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Legal Disclaimer (Disclaimer Law) will be assumed to be made in the Republic of Indonesia.
The whole purpose, goals, and interests shall be governed and construed in accordance with the
laws of the Republic of Indonesia. Any disputes will be resolved in the jurisdiction/exclusive
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other countries in which power/jurisdiction can be established, or through arbitration.
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If any provision of this Legal Disclaimer deemed illegal, invalid or unenforceable under the laws
or regulations applicable and effective in the present or the future, these provisions must be fully
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force and will not be affected by the provisions deemed illegal, invalid, or unenforceable it.
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Copyright
Copyright PT TOYOTA ASTRA MOTOR. All rights reserved. Text, images, graphics, sound
files/audio, file (file) animations, video files, and all compositions on the website TOYOTA
entirely subject to the Law of Protection of Copyright and other Intellectual Property Rights. All
content/material on this website may not be copied for commercial use or distribution, nor can it
be changed or distributed to other sites.

II.

Top Management
a. Board of Directors Toyota Astra

President: Hiroyuki Fukui

Background*
Hiroyuki Fukui has been Managing Officer and Deputy Chief Executive Officer of Asia & Middle East
Region at Toyota Motor Corporation (TMC) since April 1, 2015. Hiroyuki Fukui served as Senior Vice
President and Chief Coordinating Officer of Toyota Motor Sales, U.S.A., Inc. until April 1, 2013.
Hiroyuki Fukui has been the Chairman of P.T. Toyota Motor Manufacturing Indonesia (TMMIN) since
April 1, 2013.

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Vice President: Suparno Djasmin

Background*
Mr. Suparno Djasmin serves as Chief Executive of Toyota Sales Operation and Astra Motor II - Honda at
Astra International tbk PT and served as its Chief Executive of Daihatsu Sales Operation. Previously, Mr.
Djasmin served as Deputy Director in Charge of ASMO 3 (non-Toyota). He served as the Chief Executive
Officer of Daihatsu Sales Operation. served as the Chief Executive Officer of Isuzu Sales Operation and
Marketing Director PT Astra Daihatsu Motor. Mr. Djasmin serves as a Commissioner of PT Astra Sedaya
Finance. Mr. Djasmin has been Director of Astra International tbk PT since April 2014. He obtained his
Bachelor's degree from Faculty of Agriculture & Technology, majoring in Food Technology & Nutrition,
Bogor Agriculture Institute in 1986.

Marketing Director: Rachmat Samulo

Marketing Director: Mamoru Akiyama

14

Director: Samuel Manasseh

b. Board of Commissioners Astra

President Commissioner: Budi Setiadharma

Background*
Mr. Budi Setiadharma has been the President Commissioner of Astra International tbk PT since May
2005. Mr. Setiadharma has been Commissioner of PT Hero Supermarket Tbk since June 2006. Mr.
Setiadharma served various positions in Astra Group. He served as President Director of Astra
International tbk PT (also known as, PT Astra International Tbk) since June 2002 up to 2005. Mr.
Setiadharma served as Vice President Director of Astra International tbk PT from 1998 to 2002 and
President Director of PT Federal Motor (currently PT Astra Honda Motor) from 1978 to 2000. He served
as General Manager of Honda Division at Astra International tbk PT from 1975 to 1978. Mr. Setiadharma
served as Commissioner of Astra Otoparts tbk PT. He graduated from Parahyangan Catholic University,
Bandung, in 1970.

Independent Commissioner: Soemadi Djoko Moerdjono Brotodiningrat

Background*
Mr. Soemadi Djoko Moerdjono Brotodiningrat served as Ambassador and Permanent Representative of
Indonesian Mission to UN and various International Organization in Geneva from 1991 to 1995. Mr.
Brotodiningrat served as a Director General of Department of Foreign Affairs from 1995 to 1998. He
served as an Ambassador of the of Indonesia in Tokyo from 1998 to 2002 and served as Ambassador of
the Republic of Indonesia in Washington DC from 2002 to 2005. Since 2005, Mr. Brotodiningrat served
as Indonesian Head Delegation for Indonesia Japan Economic Partnership Agreement Negotiation. He
serves as a Commissioner at PT Bank DBS Indonesia. He has been an Independent Commissioner of

15

Astra International tbk PT since May 2006. Mr. Brotodiningrat graduated from Gajah Mada University
Yogyakarta in 1965 and Institute International Dadministration Publique, Paris in 1969.

Independent Commissioner: Hisayuki Inoue

Independent Commissioner: Erry Firmansyah
Independent Commissioner: Main Sidhartha
Commissioner: Anthony John Liddell Nightingale
Commissioner: Benjamin William Keswick
Commissioner: Mark Spencer Greenberg
Commissioner: Chiew Sin Cheok
Commissioner: Jonathan Chang
Commissioner: David Alexander Newbigging

III. External Environment

a. Natural Environment
Regulation

Industry Regulation And Policy

The regulatory framework for the automotive industry in Indonesia involves various government
departments, including industry, finance, trade, energy and mineral resources, home affairs and
transportation and the state Minister for the environment. However, the Ministry of Industry is
the most important player.
Foreign Direct Investment Limitations And Ownership
16

Foreign investments must be conducted through the formation of a limited liability company
(Penanaman Modal Asing, PMA). In these circumstances, the foreign investor must partner with
an Indonesian person or entity as a shareholder. Limited liability companies are referred to as
Perseroan Terbatas (Pt).
PMA licences are granted by the Indonesian Investment Coordinating Board (Badan Koordinasi
Penanaman Modal, BKPM). The government issues a list indicating which business areas are
open to foreign investment and which are closed. the remaining industries are open to foreign
investment upon the fulfilment of specific conditions. while 100 percent foreign ownership is
allowed in the manufacturing of automobiles and parts, foreign companies are prohibited from
owning equity in retail vehicle distribution.
The minimum total investment for a PMA company (excluding investments in land and
buildings) is IDR 10 billion. The minimum issued and paid-up share capital of a PMA Company
is IDR 2.5 billion and the minimum equity of a shareholder is IDR 10 million. For companies in
the automotive industry, capital must be at least IDR 100 trillion. Although at the outset majority
foreign ownership is permitted, the law encourages foreign shareholders to divest a minority
share to one or more Indonesian shareholders within a specified timeframe.
In terms of flexibility, the operating permit for a PMA is unlimited as long as it remains active,
and foreign investors are free to manage the company fully, including having the power to
appoint directors and, if necessary, foreign technicians when suitably skilled Indonesians are not
available.
When it comes to finance, BKPM and the Indonesian Central Bank monitor the source and
disbursement of funds approved for foreign-owned companies. Navigating the Foreign
Investment Law in Indonesia can be a complex exercise involving legal uncertainties, so robust
legal advice is critical.
Regulations Governing Vehicle Manufacturing And Ownership
Over recent years, the Ministry of Finance has been working with key financial institutions in
order to bring about change within the automotive industry. Beginning in the first half of 2012,
the Ministry of Finance, together with Bank Indonesia, introduced new regulations for vehicle
17

ownership. From this point onwards, consumers are required to make a downpayment of 30
percent when taking a vehicle ownership loan from a bank, or a payment of 20 to 25 percent
when borrowing from a financing company.
Ministry of trade legislation has a direct impact on vehicle manufacturers. In May 2012, it
annulled a law allowing vehicle manufacturers to import finished goods due to concerns that this
would have an adverse effect on parts manufacturers in Indonesia. In addition, the ACFtA
(AseAN-China Free trade Area) came into effect in early 2010, which allowed more Chinese
products to enter the local market. The initial signs are that the automotive industry in Indonesia
has not suffered as a result of ACFtA, with import duty for CBU automotive vehicles being cut
from 50 to 40 percent. The domestic automotive industry continues to thrive thanks to healthy
demand and supportive regulations from the government.
The government intends to secure Indonesias position as a production base for international
manufacturers by 2025. It expects Indonesia to become a key manufacturer of sUVs and MPVs
within the region, and to be involved in the design of 80 percent of all engines for four-wheeled
vehicles. Added to this, the government would like to develop Indonesia as a major producer and
supplier of premium vehicle components.
Amid concerns about the rising cost of fossil fuels, and the fiscal pressure created by significant
fuel subsidies (which date back to the time when Indonesia was a net exporter of oil), the
government is also encouraging the production of Low Cost Green Cars (LCGCs). It is planning
to introduce significant tax cuts for LCGCs which could reduce their costs16 to belowIDR 100
million (UsD 10,000) per unit, a figure within reach of the growing middle class.

the

government also wishes to cut carbon emissions in five main sectors, including transportation, by
26 percent by 2020.
Tariff And Non-Tariff Barriers
Indonesia has been a low-tariff country by developing country standards and has successfully
implemented tariff liberalization programs over the past decade.
The widening trade deficit has led to new measures, including increasing the import tax for
consumer goods, from the present level of 2.5 percent, to 7.5 percent. To boost exports, the
18

government plans to modify the tax payment scheme for exporters (KIte) and make it easier for
export-oriented industries to absorb raw materials and capital goods.
In 2012, the Finance Ministry also pledged to expand import duty exemptions on machinery,
goods and materials for the development of the domestic automotive manufacturing industry and
provide various incentives in the form of an income tax exemption for motor vehicle
components.

Corporate Social Responsibility

As a form of contribution to Indonesia, Toyota Astra Motor strives to provide the best for
Indonesia through various Corporate Social Responsibility (CSR), which consists of four areas
of the environment, education, traffic safety, and community development.
In the field of the environment, among others Toyota Forest, Karawang (2003), Toyota City
Forest, Plumpang (2005), Toyota Park, Cempaka Putih, North Jakarta (2009), 30 trees for each
one Toyota Duty Free unit purchase, Parks National Gunung Rinjani, Lombok, (2009), Toyota
Eco Youth (since 2005), Astra Park in collaboration with its subsidiary Astra (2010), Main
Dealer's eco activity, Nasmoco Green Forest in Semarang (2010), Auto2000's 3500 cotton
planting ( since 2007), and Toyota Car for Tree - Toyota Eco Island (since 2010).
In education, among others, the Toyota Technical Education Program (1991), Toyota and Astra
Foundation (Since 1974). Meanwhile, in the field of Traffic Safety is Toyota's Smart Driving. As
in the field of Community Development, namely in the form of donations and empowering
environment to achieve a harmonious relationship (education, health, economic, cultural,
environmental, and religious).
TAM CSR program implemented on an annual basis. In the future, TAM will continue to
improve CSR activities that focus on education, the environment and traffic safety, which is part
of TAM's commitment to provide the best social contribution.

b. Societal Environment

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PEST Analysis
Political
Indonesia's increasingly political condition today is getting better which is characterized by the
presence of national leadership succession did not occur a riot which means. The condition is
seen very conducive so that investors willing to infuse its investments to Indonesia or those who
move in the motor vehicle assembly industry is relocating facilities production of industrial
components in Indonesia so that Indonesia is still attractive.
Legal certainty that the Government enforced the rules and start ketenaga command that the
better the automotive field certainly makes investors no doubt to its production capacity in the
zoom berekspasi Indonesia. In addition to meeting the needs in the country, which has a huge
market potential, they also do exports to some neighboring countries.
Government policy (Presidential Instruction No. 2/1996) about the automotive industry in
Indonesia opened up opportunities to expand automotive components company is better because
the local content must be met. Such policies create opportunites for new players to break into the
industry of automotive components in Indonesia, so that companies that already exist by now it
should also prepare themselves against the possibility.
Economic
Purchasing power is declining due to rising fuel prices by the Government this year that is
expected to lead to inflation this year will be high. These conditions are in addition to changing
consumption patterns also change the pattern of community transportation community, where it
used to be if he came home and went to work using their personal cars will switch to using
public transport or use motorcycles. Industrial components will be affected directly, where the
level of substitution to be longer because the vehicle is not operated on a regular basis mainly
private cars. But on the other hand, the motorcycle industry is becoming increasingly attractive
due to the shift from the private car transportation modes into motorbikes.
Policy import duty exemption on raw materials was imposed by the automotive component of
the Government so that it could reinforce the incentive structure of the component industry in the
country. But the presence of fluctuations in currency exchange rates of Rupiah against foreign
currencies makes production costs become unpredictable with good material for automotive
components are still imported. Most of them are buying raw materials in foreign currency but
20

they sold in rupiah. This exchange rate fluctuations that resulted in the company increased the
risk because their selling price must be added to reduce losses occurring in the future if the
fluctuation in the exchange rate of the Rupiah.
Sociocultural
Distribution of population in Indonesia are uneven where majority of the population resides on
the island of Java while Sumatra island was ranked second. This happened also on the
distribution of motor vehicles, where the island of Java and Sumatra tops the world number two
because the main object for the mobility of the population. These conditions result in a major
automotive components must be able to distribute their products to both the island if it wants to
enter the segment after market addition should also be distributed to other regions in Indonesia.
Government policy concerning labour to do so far support for the growth of the company, so
labour management becomes easier. However, because the cost of living and health of the
increasingly costly, the company should be addressing this matter so as not to get stuck with a
problem labour. The rule about unions certainly should be able to
If you see a huge potential market in Indonesia with a population of over 220 million people in
2007, according to the Central Bureau of statistics, then the motor vehicle manufacturer will
market its products to Indonesia to be used as a mode of transportation. To make Indonesia as the
market of the products they produce, though facilities perakitannya not in Indonesia so the
market after market components of the vehicle itself was created.
Technology
Technology play an important role in the automotive components industry since the invention of
the automobile's new technology will bring impacts on components with the old technology. The
policies of other countries that implement certain standards regarding environment and health
make the company must meet these criteria. In addition to opening opportunities for producing
new-tech vehicle components, but on the other hand the invention of new technology in the
automotive industry would eliminate the components still use gradually. Like the invention of the
CDI are starting to eliminate the use of platinum for the electrical contact on motor vehicles,
although for segments after market components are still needed because the old model vehicles
already circulating are still using old technology.
21

Technology has also become one of the barriers for new players to dive into this industry because
of the new players must have technology on the product or the production process. Companies
that currently have entered in industrial components must always develop well technology
related products so that new products are marketed is able to adjust with the changing
automotive technology. In terms of the production process efficiency must also be done with the
new production process technology so that the sale price could be competitive.
In the production process, the discovery of new technologies have an impact on the efficiency of
the production process so that the production cost be lower, which in turn encourage other
companies to undertake efficiency. On the product, the discovery technology provides the
operational impact on a more comfortable vehicle and or more efficient in operation.

c. Task Environment
Porters Five Forces Model is a very important tool to analyze the industrial parameters and to
develop business strategy. Here five different factors would be discussed to highlight the
attractiveness and productivity of a market. Now we will discuss it for PT. Toyota Astra Motor.
Threat of New Entrants
The threat of new entrants is very low in the automobile industry. The industry is very mature
and it has successfully reached economies of scale.
In order to compete in this industry a manufacture must be able to achieve economies of scale.
For this to occur, manufacturers must mass-produce the automobiles so that they are affordable
to the consumer. Another barrier to entry is that it takes an incredible amount of capital to
manufacture the automobiles. It takes an extreme amount of capital not only to be able to
manufacture the products but also to keep up with the research and development that is necessary
for the innovation requirements. Access to distribution channels is another high barrier to entry.
A company must find a dealership to sell their automobiles or have their own dealership. Space
in the dealerships lots is very limited making it difficult to have a wider variety of inventory.
Bargaining Power of Suppliers

22

The bargaining power of suppliers is very low in the automobile industry. There are so many
parts that are used to produce an automobile, that it takes many suppliers to accomplish this.
When there are many suppliers in an industry, they do not have much power. There are so many
suppliers to this industry; manufactures can easily switch to another supplier if it is necessary.
Bargaining Power of Buyers
The bargaining power of the buyers is moderately high. The buyers being consumers purchase
almost all of the industries output. The manufacturers depend on them to stay in business. The
buyers also are a significant portion of the industries revenue. If they cannot keep their buyers
happy then they risk losing them to their competitors.
The buyers have low switching cost if they are not happy. All the buyer has to do is sell the car
they own and purchase a new one. The reasons why the power is not completely high is that the
buyers are not large and few in number. The buyers do not have the ability to integrate
backwards into the industry. If they want a car then they have to purchase it from a dealership.
Threat of Substitute Products
There are not many substitute products for automobiles. Some of the substitutes are walking,
riding bike or taking a train.
Substitutes products all depend on the geographic location of the consumer. In some cities such
as New York or Chicago, a car is not as necessary. In cities such as those, the subway is the most
effective means of transportation. However, in most places a person must have access to an
automobile in order to get around.
Rivalry among Competitors
Rivalry among the competitors is very strong is this industry. The major competitors are so
closely balanced that it increases the rivalry. In order to gain market share in the automobile must
gain market share by taking it from their competitors. One of the other reasons there is such high
rivalry is that there is a lack of differentiation opportunities. All the companies make cars, trucks
or SUV's. The competitors are compared to one another constantly.
The price, quality, durability, and many other aspects of different manufacturers are greatly taken
into consideration when deciding what type of vehicle to purchase.
23

When the different

manufacturers advertise they even compare their products to their competitors. For example, the
commercials will focus on areas where the company outperforms its competitors.

IV.

Internal Environment

1. Corporate Structure

24

2. Corporate Culture
Organizational Culture Toyota-Astra
Toyota's view of a leader of the Toyota Production System, which is the operating management
system to achieve the goals of the highest quality, lowest cost, and shortest lead time by
encouraging people to get to the target. In other words, the management tried to conduct an
efficient and effective production in the use of natural resources and its human.
Leaders developed from the company is a leader as well, which has long and correctly
understand the history and culture of this Toyota from day to day. This is in order to eliminate the
concept of imbalances in the workplace on the part of the executive. Thus, the position of the
authority be quite stable.

25

A leader must give a tremendous impact on a company. How a leader can bring a tremendous
cultural change to cure or restore an ailing company. Therefore, the responsibility of leadership
here is very high.
A leader must have a critical element of cultural and Genchi Genbutsu which means deeply
understand the actual situation in detail and leaders must demonstrate the ability and understand
how work gets done at the level of the Toyota factory floor. So, do not just read the situation. But
understand any problems that you and immediately deal with solutions that do not harm.
In addition, other important teachings about the leadership of the Toyota Way is the effort to
create a culture that supports learning organization environment. By the term Deming, Toyota
uses "adherence to the goal" throughout the organizational elements that provide the basis for a
consistent and positive leadership as well as the environment for learning. It can be said that
there are deficiencies in the companies is a method of learning to do better improvement.
The application of GenchiGenbutsu can be easily followed on the production floor, it also applies
to executives and managers who have to look directly, and fully understand the actual situation at
the level of workmanship. The main core of Toyota's philosophy is that the culture must support
people in their jobs.
Management must demonstrate commitment to quality every day. Culture to be created is to
prioritize quality and prioritize safety. In essence, the culture is to be built is to develop leaders
who truly understand the work, live the philosophy, and teach it to others.
Toyota Way involves organizational learning from his mistakes, determine the root cause of the
problem, provide effective countermeasures, empowering employees to implement these
measures, and have a process to transfer new knowledge to the right people. The main principle
is to identify the root cause of the problem and develop countermeasures.
Toyota Way into a learning organization through relentless reflection (hansei) and continuous
improvement (kaizen). Kaizen, is essentially a learning attitude and mindset of all leaders and
employees, an attitude of self-reflection and even self-criticism, a burning desire to develop.
While Hansei, which means self-reflection, responsibility, and organizational learning. With
Toyota has continued to reflect the culture of self, then Toyota will have the opportunity to see it
26

grow and develop in a new way. If someone admitted to having made a mistake, they will learn
from that mistake.
Another difference can be seen from hansei culture (self-reflection), which is to honestly admit
mistakes/weaknesses and improve weaknesses. Workers in Indonesia would be nice if more
discussing the weaknesses of the success, so it can be used as a learning process to correct
themselves with the aim of better improvement and sustainable.
The workers in Japan is also a hard-working person and unyielding. Similarly there are
differences with the workers in Indonesia who work for money, so little regard for quality.
After viewing the profile organization culture of Toyota, is certainly crossed our minds the
comparison between Japanese companies and the Indonesian company in terms of its
organizational culture.
For Japan, basically every leader should be selected based on ability and understand the work
that will lead, but in Indonesia less nature teaches to his subordinates. As one of the cultural
genchigenchi, not all employees will see the problem in detail and comprehensively.
There are still a lot of employees who are committed to the company and are less likely to "cool"
and not too concerned about the profit of the company, since most workers in Indonesia are
working only for money. Where there is more money, that's where the workers would work
harder. Where there is a lure-lure of money, that's where the workers will fight to be the highest
position in order to get more money.
Moreover, in Japan it is upholding two priorities, namely prioritizing quality and prioritize safety.
Culture of quality and safety priority this is upheld by the company in Japan.
Slightly different in Indonesia, only the quality factors are much more preferred, while the
occupational safety and health problems less attention. This can be seen with the non optimal use
of Personal Protective Equipment on the operators and workers, which can be caused by the
company giving knowledge workers are also very less, so many workers are "underestimate" the
use of safety equipment.

27

In accordance with the points stated above SP Robbins, the company Toyota has criteria such as:
between members of the organization loyal to the organization, guidance behave to those
outlined in the company with a clear, understandable, complied with and implemented by people
inside the company so that people who work becomes very cohesive, the values of the
organization adopted not just stop at slogans, but internalized and expressed in everyday
behavior consistently by people who work in the company.
Commitment
There is no similar way to defining Moving Forward. For Us, Moving Forward is about listening
to other people's needs and the needs of our planet. This philosophy is embedded in every step
that we did.
Moving Forward is about designing eco-friendly vehicles in the future. With the vehicle engine
technology pioneer hybrid electric/gas, we are talking about machines that use energy from
oxygen, where the waste products in the form of water. And with the latest technology that
ensures safety, such as pedestrian recognition systems, inter-vehicle communication and radar
safety before the collision, the experts We work to create a vehicle that is safe for everyone.
Our goal is to improve the quality of your life. This could mean an MPV that take children to
school. A sedan that shows confidence, "You Have the Right" or a 4x4 that work as hard as you
did.
Thus, any sense Moving Forward for you, we can help you to achieve it. Moving Forward is
about continuous improvement. When you look at the world from this side, you can feel the
improvement from day to day, in every aspect of life. So, when we look to the future, there is
only one way we move forward.

3. Corporate Resource
28

A. Finance
The profitability of Toyotas automotive operations is affected by many factors. These factors
include:

vehicle unit sales volumes,

the mix of vehicle models and options sold,
the level of parts and service sales,
the levels of price discounts and other salesincentives and marketing costs,
the cost of customer warranty claims and othercustomer satisfaction actions,
the cost of research and development and other fixed costs,
the prices of raw materials,
the ability to control costs,
the efficient use of production capacity,
the adverse effect on production due to the reliance on various suppliers for the provision

of supplies,
the adverse effect on market, sales and productions of natural calamities and interruptions
of social infrastructure, and
Changes in the value of the Japanese yen and other currencies in which Toyota conducts
business.

29

Toyotas finance receivables are subject to collectability risks. These risks include consumer and
dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying
values of these receivables. See discussion in Critical Accounting Estimates Allowance for
Doubtful Accounts and Credit Losses and note 10 to the consolidated financial statements in
Toyotas annual report on Form 20-F. Toyota continues to originate leases to finance new Toyota
vehicles. These leasing activities are subject to residual value risk. Residual value losses could be
incurred when the lessee of a vehicle doesnot exercise the option to purchase the vehicle atthe
end of the lease term. See discussion in Critical Accounting Estimates Investment in
Operating Leases and note 2 to the consolidated financial statements in Toyotas annual report
on Form 20-F. Toyota enters into interest rate swap agreements and cross currency interest rate
swap agreements to convert its fixed-rate debt to variable-rate functional currency debt. A
portion of the derivative instruments are entered into to hedge interest raterisk from an economic
30

perspective and are not designatedas a hedge of specific assets or liabilities on Toyotas
consolidated balance sheet and accordingly, unrealized gains or losses related to derivatives that
are not designated as a hedge are recognized currently in operations. See discussion in Critical
Accounting Estimates Derivatives and Other Contracts at Fair Value and Quantitative and
Qualitative Disclosures about Market Risk and notes 20 and 26 to the consolidated financial
statements in Toyotas annual report on Form 20-F. The fluctuations in funding costs can affect
the profitability of Toyotas financial services operations. Funding costs are affected by a number
of factors, some of which are not in Toyotas control. These factors include general economic
conditions, prevailing interest rates and Toyotas financial strength. Funding costs decreased
during fiscal 2013 and 2014, mainly as a result of lower interest rates.
Toyota launched its credit card business in Japan in April 2001. As of March 31, 2014, Toyota
had 12.7 million cardholders, an increase of 0.9 million cardholders compared with March 31,
2013. Creditcard receivables as of March 31, 2014 increased by42.8 billion from March 31,
2013 to 380.9 billion.
Other Business Operations
Toyotas other business operations consist of housing (including the manufacture and sale of
prefabricated homes), information technology related businesses (including information
technology and telecommunications, intelligent transport systems and GAZOO) and other
businesses. Toyota does not expect its other business operations to materially contribute to
Toyotas consolidated results of operations.

31

B. Marketing
Personal Selling
One of the personal selling activities by PT TAM (Toyota Astra Motor) is to sell directly from house
to house (Door to door), the author has experienced that where a seller of TAM (more precisely
dealer) offers its products straight to consumers and explaining about the product in the brochure.
Personal selling activities subsequently applied by TAM is the message through correspondence,
where the TAM promote their products through E-Catalog (such as links) are sent via E-Mail. This
usually takes place after the exhibition where visitors stand TAM asked to fill out a list of email
addresses that accompanied the visit.
In addition to both of the above, if we want a product of TAM also provides Telephone Selling and
Selling Websites (fill in a form on the website). Where prospective customers can order and obtain
the desired information by contacting the nearest branch office.
Sales Promotion
Sales Promotion is one of the promotional mix that is being intensively conducted by PT.Toyota
Astra Motor (TAM). Sales promotion consists of short-term incentives to encourage the purchase or
sale of a product or service (Kotler and Armstrong, 2006: 441). Sales promotion conducted by
PT.Toyota Astra Motor (TAM) is Consumer Prom0tion (CP), Trade Promotion (TP) and Salesforce
32

Promotion (SP). CP is the promotion is done directly to the end consumer, while TP addressed to the
retailer or wholesale customers (Kotler and Armstrong, 2006: 445).
Consumer Promotion (CP) conducted PT.Toyota Astra Motor (TAM) is a credit program Suka Suka, Inovaganza Program, Program Pestahun Baru, Lightweight Installment Program, Lottery Gold
10 Gram. The objectives to be achieved by PT.Toyota Astra Motor (TAM) on CP in the form of loans
procurement Love - Love and Light installment program above is memumbuhkan buying interest for
prospective customers and increase sales by providing ease in possession of the vehicle at the time of
rising product prices. While the programs and program Inovaganza NEW PESTAHUN aims to attract
potential consumers to purchase Toyota products of the competitors' products (selling out
competitors).
While the Trade Promotion (TP) conducted PT.Toyota Astra Motor (TAM) is a program for
Salesforce Discounts and Promotion (SP) held trade fairs (trade shows) in the center - the shopping
center and Buy 1 Get 1 Free for users Toyota in Amusement appropriate terms and conditions.
Public Relations
Public Relations is a promotional tool that is capable of forming public opinion quickly, so it is called
as an attempt to socialize or promote a product. In this case PT. Toyota Astra Motor also held a
strategy to promote the products of Toyota namely by holding Program HORE Toyota (Toyota
Holiday Rame-Rame), Toyota Truefriend consisting of Toyota Club, Kids Corner and Education
Media.
Toyota Club is a place for Toyota customers to share experiences related to Toyota products they use
as well as a liaison in event activities such as suave and social service as well as online activities.
Kids Corner is one of Toyota's special program for the delight of children of parents in the form of
Toyota Partner Robot users, Robna & Humanoid. Education and media that provides tips education
about particular automotive and other interesting info, info that would benefit the community in
general. And also held a charity Toyota Friend Mudik, which means free trip with the terms and
conditions apply.
In addition to the above publication, Toyota also issued a special application to easy access Toyota
and connect with other customers, namely Toyota Move Enjoy App On Your Car and Your Phone.

33

Toyota Move Enjoy APP (http://www.toyota.co.id)

Direct Marketing
Direct Marketing activities of PT Toyota Astra Motor is to conduct direct sales with face to face,
where prospective customers can directly go to the nearest Toyota Showroom products and get the
best service and the desired information, as well as direct marketing is a means of direct companies
to meet consumer's offer products.

Direct Marketing (arabcarmegazine.com)

Advertising
Advertising is reaching the public at large (bulk), not private but directly to the audience
(impersonal) and can be convincingly convey the idea of cause and effect which dramatif
(expressive). In advertise their products PT. TAM using multiple media, both electronic and nonelectronic and advertising strategies that can support marketing purposes. Such as audio-visual
advertisements on national TV and private with its flagship tagline "Moving Forward", radio,
magazines and newspapers Automotive, Social Media such as Facebook and Twitter, and other

34

advertising media. All the way advertising is managed to help create a brand image (brand image)
Toyota as the best vehicle successfully birth in Indonesia.

Toyota Product Ads Private TV Station (Capture youtube.com)

Toyota

Product

http://www.toyota.co.id

Brocure
Print ads Toyota (goklas-tambunan.net)

C. Human Resource
Toyota to this day has approximately 300,000 employees worldwide, and nearly a third are in
Indonesia, in placement or acceptance of an employee, the company always held a test continued
with the training, according to its disciplines and expertise,

35

"Because people make our automobiles, nothing gets started until we train and educate our
people." As seen in these words, which were expressed by Honorary Advisor Eiji Toyoda, Toyota
seeks to develop human resources through the activity of making things. Toyota believes that the
development of human resources requires the handing down of values and perspectives. In
conjunction with the geographic expansion of business and the growth of business areas,
undertaking global actions for the development of human resources has become a priority issue.
Toyota is building both tangible (a new learning facility) and intangible (course content)
structures relating to team member development that ensures a secure and steady flow of
qualified human resources to conduct Toyota's global business in the 21st century.
Fully Committed and Thorough Human Resources Development
Toyota conducts systematic company-wide and divisional training and assignments for training
purposes with an emphasis on on-the-job training (OJT) to ensure that associates can fully utilize
their

abilities.

Toyota has defined the required qualifications of "professional staff" 1 for office and engineering
positions, and "T shaped human resources" 2 who are able to perform day-to-day activities and
expand their skills in technical positions. Company-wide training is conducted based on
employee qualifications, as well as specialized training for individual divisions, language
training, and special knowledge and skill training.
In October 2002, Toyota created the booklet "Toyota Developing People" and distributed it to
all associates to create a common understanding that "the source of Toyota's competitiveness is
human resources development" and to promote the creation of workplaces where personnel
development takes place at all sites and at all levels.
1. Professional Staff: Associates who can create added value on their own and contribute to
society, as well as utilize their strengths and exercise teamwork
2. T Shaped Human Resources: Team members with a broad range of skills, such as English
language skills and operational knowledge (the crossbar of the "T") as well as highly
specialized knowledge and experience in a particular field (the vertical bar of the "T")

36

Company-Wide Training to Support Professional Staff

Key Principles of The Toyota Way

2001

A Shared

Toyota Way

In order to

carry out the Guiding Principles at Toyota

Motor Corporation, in April 2001 Toyota adopted the Toyota Way 2001, an expression of the
37

values and conduct guidelines that all employees should embrace. In order to promote the
development of Global Toyota and the transfer of authority to local entities, Toyota's
management philosophies, values and business methods, that previously had been implicit in
Toyota's tradition, were codified. Based on the dual pillars of "Respect for People" and
"Continuous Improvement," the following five key principles sum up the Toyota employee
conduct guidelines: Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect,
and Teamwork. In 2002, these policies were advanced further with the adoption of the Toyota
Way for individual functions, including overseas sales, domestic sales, human resources,
accounting, procurement, etc.
Toyota Institute
In January 2002, the Toyota Institute was established as an internal human-resource development
organization that aims to reinforce the organic integration of global Toyota companies by way of
sharing the Toyota Way as well as to promote self-sufficiency. The purpose behind the Toyota
Institute's establishment is to promote the human resources development of global Toyota in
order to promote true globalization and to realize the advancement of Toyota's core values. TMC
President Fujio Cho is the Toyota Institute's first president, with 16 full-time associates managing
the business.
Within the Toyota Institute, the Global Leadership and the Management Development Schools
constitute the specific content of the training programs.
In 2002, the Toyota Institute conducted training programs targeting global leadership candidates
from TMC and overseas companies and for middle management personnel to enhance
understanding of the Toyota Way, enable best practice sharing and drafting of action plans, as
well as contribute to the creation of a global human network.
Outline of Training Programs

38

D. Technology
Common Rail
D4D Common Rail
Fuel GCC has been given by the supply pump pressure stored in the common-rail before being
distributed to the injector-injector. ECU (Electronic Control Unit) and EDU (Electronic Driving
Unit) controls the volume and the fuel injection timing to an optimum level by operating and
closing the injectors in accordance with the signals from the sensors. This process is similar to
the EFI system used in gasoline engines.
VVT-i (Variable Valve Timing-intelligent)
VVT-i technology is an advanced electronic system that regulates the fuel inflow valve action
(inteks) electronically both in terms of time as well as the size of the opening and closing of the
valve in accordance with a rotation engine to produce optimum power, fuel efficient and
environmentally friendly
optimum power in every round of the machine
Save Fuel. Electronic valve setting makes the fuel consumption to be frugal and efficient.

39

 Exhaust Environmentally Friendly. The supply of fuel and air are regulated by the combustion
system make the valve work to be perfect, and the exhaust gases produced into besih
EFI (Electronic Fuel Injection)
EFI system uses various sensors to detect the condition of the engine and the car driving
conditions. Furthermore, engine ECU calculates the optimum fuel penyemperotan volume,
which then instructs the injector to spray fuel.

V.

Analysis SWOT
Internal factors
Streght (strength)

internal factors

information

Effective distribution channels

Toyota uses a two-tier distribution network, it is

easy for consumers to quickly obtain the desired
product.

The success of product development

Toyota has developed a low-cost car products

are already successfully getting sales terbayak
on Toyota Avanza and is now being developed
further with a brand new and more economical
price with the brand Toyota Agya.

Application of technology

The application of technology in Toyota

products sangatlaah shot, the car proved to be
biased in creating it hovering over the road.
40

Gauging the effectiveness of promotions

Toyota is promoting products (1) Advertising,

using the media: television, banners and
banners, newspapers, brochures, T-shirts and
uniforms, and a symbol or logo. (2) Sales
Promotion, by way of consumer promotion and
sale salesperson. Consumer promotion is done
by providing coupons, price promotion,
demonstration, competition, refunds
compensation.While salespeople promotion is
done by way of bonuses, contests salespeople
and sellers meeting. (3) The turnover of
individuals, carried out by means of seminars
andcustomer gathering, FGD (Focus Group
Discussion). (4) Public Relations, done by
holding an exhibition (exhibition), showroom
events, and souvenirs.

Human Resources

centered on human resources, which sustain

consistent growth, innovation, profitability, and
excellence. Through their access to the
executives and managers of Toyota and Toyota
plants worldwide, the authors show you that
you can build a culture of continuous
improvement

Owned assets to finance operations and

investments

Astra's net asset value increased by 18% to Rp

47.2 trillion and the value of assets in the
allocation to finance the operational and
investment

Pengunaankandungan logamsampai 75%

With the additional investment in the

components sector, Toyota aims to increase
local component content of some models such
as Ki which Innova from the current 75% to
85%.
additional investment would give a double
impact to encourage industrial development
component in In donesia.

41

Toyota has become a generic name in the global

market. Every time the company launched a new car in
the market which is always great support from a market
already otientation so the car was introduced by easly
include the introduction stage. People have many oftrust
Toyota has become a generic name in to name them and this is why Toyota is a leader in the
the global market
automotive industry.

Toyota has a great power forits car

2.OD

Toyota has a great power forits 2.OD cars, Toyota diesel

engine heat to sell the car and is the only company to
offer a diesel engine in this car category.

Toyota vehicles are made according to the

environment. No doubt, if the car is available but Toyota
has the edge because it has learned a variety of
Toyota vehicles are made according to environmental conditions and community. So the new
the environment.
additions and changes that proved successful.

Total

Internal factors
Weakness (weakness)

Internal factors

Information

A future employees

Toyota reportedly will remodel marketing

division. Source companies mention their plans to move
some office job positions that are in other states even
though the company did not want to comment. The
company policy is threatening the future of the
employees, many of whom had served for many years.

Manufacturing facility

Toyota successfully proved various efforts to preserve

42

the environment, among others, as a company leader

hybrid technology and environmentally friendly
manufacturing facility.

global positioning

TMC see Toyota Indonesia plays an important role in the

global automotive market. These changes are expected
to not only strengthen Toyota's position in the domestic
market, but also become an important player in the
automotive global market.

Development of domestic brands

The development of well-known domestic brands on the

market quite valuable car is not too expensive for
example Toyota Avanza, while valuable vantastis cars
such as the Toyota Camry is not too well known that
only certain people can have a car that is worth 5.7
trillion.

Market information

Market information is done by electronic media, print

media, and through events organized by the company.

Production failure rate

In America and Canada, the world's largest car market

and also for Toyota, the company must draw on millions
of best-selling cars, including the Prius, Camry and
Corolla. There are a number of serious problems with its
gas pedal. The news was shocking indeed.

NZ-type machine that is used by the all-new Toyota

Yaris. The engine is still imported from Thailand,

Machinery import

The reason is still imported aluminum engine as they

relate to the raw materials that are not available in
Indonesia. "For the manufacture of shells machine, we
do not use artificial pure aluminum INALUM

43

Many businesses that draw into sales

forechating

Many businesses that draw into forechating sales due to

changes in political and economic scenario

Differences in perception between the domestic market

Differences in perception between the with the international market of the product class Toyota
domestic market with the international Rush. Toyota's own party claimed that the Toyota Rush
market of the product class Toyota
placed on the Mid-Class SUV class. While the criteria cc
Rust
capacity class Mid-Class SUV itself is 1500cc

Pivot systems that let consumers

Indent systems that let consumers.Sometimes the

customer cancels the booking process because the
disappointment of the promise given by the Toyota
dealer.

Total

External factors
Opportunity (opportunities)

External factors

information

The opening of the domestic market

The opening of foreign markets, Toyota has spread to

several countries, one of the Country is Indoneaia

Technology package

Toyota continues to develop intermediate four-door

sedan fuel cell technology, which has not been named,
with a target launch in California starting in 2015. In
addition, this vehicle is also intended to Japan and
Europe. Jim assured, the technology package offered,
among other capabilities, packages, and other attributes
will be able to push sales in the North American region.

44

Success of manufacture Daihatsu coure is a great

opportunity for Toyota to excel furter careful planning
and the right time to launch a new car can prove to be
Success of manufacture Daihatsu coure successful.

The opening of export markets

Effect of awards that raise the image of

the company

The labor market

Export

Export is a great opportunity for Toyota Indus

motors. Vehicles that are exported to Bangladesh only
once to prove the plant capacity and efficiency of the
company. It has to start again.

Contracts with government

departments

Contracts with government departments eg motorway

police, martyr strength and thedigniteries where han
Corolla opportunity to face together the business market
dealing with the consumer market.

Can offer discounts

Can offer discounts for government departments and

large organizations in the purchase of vehicles in greater
amounts.

Total

External Factors
Treaths (Threats)

45

External factors

information

Threat of competition from Honda

Although Toyota enjoys the position of being the number

one car company, still faces some competition,
especially the threat of Honda. Honda has adopted a
strategic aggressively to capture the market.

Trends can be a threat

Although Toyota carefully keep an eye on changing

trends, customer needs are still changing and the trend
could be a threat.

Import AC

Import back car air conditioner which is also considered

as a threat to the company.

Influence government policy

In issuing its products Toyota always involve

pemeritah policy through emission system, whether
the products bisi pass the test to be used or not

The intensity of competition

Intensity of competition Toyota is so strict, one Toyota

Avanza and Daihatsu Xenia in addition there is the
Toyota Agya and Ayla Dahatsu

Influence campaign environmentally

friendly products

Toyota, Joko, very aware of the importance of protecting

the environment from pollution.Therefore Toyota always
developing new technologies that are environmentally
friendly and have had international standards.In addition,
Toyota's latest products are also saving fuel.

The economic downturn in the country Astra did have to raise the price of cars and motorcycles
this year for various s good, are mutually ber
complication, suppose a weak rupiah value roomates
Contributed to a 5 percent drop in first-quarter profit on
automotive division, and Also the increase of in taxes for
luxury cars in order to Overcome the domestic economic
46

downturn

VI. Strategic Alternatives & Recommended Streategy

Toyota Develops Strategies for Environmental Technologies
The mobilization of this era, many car manufacturers are increasingly aware of the importance of
conserving nature. Hybrid cars are increasingly developed, economical car is also always
introduced in the market. Toyota has also developed a strategy for a more environmentally
friendly technologies.
The 20th century is a period in which industry and technology evolve globally, resulting in the
production of vehicles and rapid population growth. This led to a sharp increase in fuel
consumption and, if not prevented it can cause the fuel crisis in the next century. At this time, the
issue of environment and natural resources should be a major focus for both users and
manufacturers of oil-fueled vehicles. There are three main problems regarding this issue, that is,
finding alternative energy substitute for oil, reducing CO2 emissions, and prevent pollution. You
and thousands of users of natural resources must always strive to preserve the environment
around you to do the slightest change and starting from now.
Although the demand for alternative energy such as fuel gas, electricity and hydrogen will
continue to rise, any alternative sources of energy has always had its own weaknesses. Oils
available today has become the most widely fuel consumption, especially for vehicle users. Over
time, these fossil fuels will be exhausted and cause its price soaring. Before this happens,
precautions must be found and implemented. Oil may be the primary fuel of most vehicles, but
research on alternative energy might be able to give a big change in the future. Some motor or
powertrain vehicle that can be found on hybrid vehicles, electric vehicles and sell vehicles,
would be required to use various types of vehicles as a substitute for fuel oil.
Toyota as one of the leading car manufacturers in the world, will continue the development of
various types of these vehicles. By always trying to manufacture vehicles that are
environmentally friendly and fuel efficient. Toyota will develop future generations of cars that
use alternative fuels such as fuel gas, electricity and hydrogen.
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Recommended Strategy
Marketing Mix
This study is given based on the concept of the marketing mix that is an inherent part of the
company's marketing actions. Marketing mix is the accumulation of four elements of the market
as product, price, place and promotion. All four elements have the same implications for the
effectiveness of the company's marketing strategy. Companies that operate in all types of
industrial businesses use the marketing mix in the formation of various marketing strategies
merekadantaktik
This can be understood in a way that stands out with the help of examples of Toyota motor that
operates in the automotive sector. The company has gained a great competitive advantage
through the application of the marketing mix in different marketing strategies and diverse.
Marketing mix makes Toyota with a competative advantage in many aspects of marketing
activities.
Product
Product mix is a key element of the company's marketing strategy. Toyota is famous for the
quality of the product. It has a very large range of products such as cars, trucks, vans, sports cars
and hybrid products. In the car, the most famous models of the company are the Corolla, Prius,
Matrix, etc. truck companies including Tacoma and Tundra. In the hybrid product, the Prius and
Camry Hybrid are the most popular products. Product features of all types of vehicles is very
high tech grounded. It comes with fuel efficiency, the model attractive and happy driving.
Thankful enterprise customers with advanced quality products and the most effective and this has
provided great success for the company.
Determination of the product of the company is incorporated part of the marketing strategy of the
company. The company's marketing department mainly concentrates on market segmentation, in
accordance with the requirements set out from customers in order to meet the needs of market
segments odd effectual manner. In the marketing strategy, the company is also considering the
product's brand image as an important aspect. With innovative products branded, the company
wants to implement a strategy of understanding the entire car market (Chen & Green, 2009).
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Price
Price is the most important element of the marketing strategy of Toyota Motors. The company
has a pricing policy which is very prominent in contrast other car companies. Toyota's pricing of
products only affordable by the customer. Confirmed the company's pricing policy associate with
the different geographical segments according to the customer's financial condition.
In the marketing strategy, the company did not increase the price even after the big rise of
competition in the car market. As part of the marketing strategy, the company mainly
concentrates on customer satisfaction with low-cost and quality-based products (Toyota Motor
Corporation, 2009).
Place
For the timely delivery of the vehicle, the company has spread out of the store in all areas of
customer approached. Supply chain companies are also very nutritious. Toyota dealers to supply
vehicles to the market places are accurate to within accurate. For the effectiveness of the
marketing strategy, the company concentrates on increasing sales and to adopt a strategy that
alliances and Joint Ventures with well-developed market. Marketing mix, especially a mixture of
a strike enlargement strategy of the company. Because this basis, the company proposes to make
a change in marketing strategy disrupted according to changing marketing conditions.

Promotion
Toyota invaluable promotional strategy. Through the web portal, the company provides
information that is precise and well-timed about the offer. The Company coordinates and
completes the marketing campaign demo vehicles as part of the promotion strategy (About
Toyota, 2009). In the implementation of promotional mix in the marketing strategy, the company
makes a profit for each customer as a very low rate of interest installments and discounts. In the
marketing strategy, the company also concentrates on market surveys for the promotion of its
products.
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Therefore, the marketing mix is a central part of the marketing strategy of Toyota Motors. With
the implementation of the various elements of the marketing mix, the company has made a very
effective marketing strategy and tactics. With a marketing strategy, structured on the basis of the
elements of the marketing mix, the company derived a very good corporate image and
profitability of the entire car market today. It is also expected that if the company changed its
marketing strategy and tactics in accordance with the requirements of the customer associated
with the four elements of the marketing mix, it will be able to assert the same level of
profitability in the future.

Conclusion
Toyota in its development has been good but there are still problems - problems which should be
small in atasin with the application of kaizen methods in the form of six steps accurate in making
product innovation, supply chain efficiency, and implementation of internal manufacturing.
Kaizen has a core concept of "working smarter", not "working hard". For example in increasing
production. In Kaizen do not need to add time and labor, but that is done is to produce a quality
product worth selling in larger amounts by using manpower, machinery, and the existing time
constraints. Kaizen greatly minimize waste in various sectors. Efficiency is emphasized at all in
the process of working in training Kaizen method.

SUGGESTION
Many things must be done marketing executive:
1. Where the production and marketing executives can do all three activities above, Toyota will
reach the target market with the most sales and become the primary.
2. In addition, executives must listen to consumers what they want on the car in order to be able
to innovate to create new products. With so consumers are satisfied with the purchase Toyota
products.
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3. Improving ad that consumers feel interested and want to buy a Toyota.

Reference
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Indonesias Automotive Industry: Navigating 2014
http://anggideapadli.blogspot.com/2010/05/tujuan-toyota-corp.html
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https://www.toyota.co.jp/en/environmental_rep/03/jyugyoin03.html
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